By on January 11, 2012

The Chinese government finally announced its long-awaited and much discussed subsidy program for the fledgling electric car industry. China will waive sales taxes on electric and fuel cell cars. There is only one limitation, which likely will make some Michigan Senators scream bloody murder: The cars must be made domestically in China.

Waiving the tax will lower the price of a car by 9 percent. According to China Daily, the Chinese government has more on offer to lure people away from fossil fuels:

“Buyers of locally made electric cars are also eligible for government subsidies of up to 120,000 yuan ($19,100) per vehicle. Imported models such as GM’s Chevy Volt are excluded from this policy.”

Importing an EV will remain legal, but it becomes silly: The imported car is slapped with a 25 percent customs duty. On top of that, sales tax, and no incentive. The domesticated EV will have no duty, no tax due, and the government will kick in big amounts of cash

That this policy would be like the above was presaged by moves of foreign joint venture partners of influential (i.e. government-owned) Chinese automakers. From GM to Nissan, all are making preparations for EV production in China.

According to China Daily,

“A total of 49 domestically made models, including the Sale electric car developed by SAIC’s car venture with General Motors and two electric cars made at Volkswagen’s two Chinese car ventures.”

I think they mean the Sail.


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8 Comments on “Chinese Government Announces EV Policy: Made In China Means Money...”

  • avatar

    It’s a good way to get customers to start buying locally to help the economy and get more electric cars on the road. I think what their doing is an excellent idea.

  • avatar

    Is electricity produced mostly buy burning coal in China? Is the pollution control for the power plants stringent in China?

    Seems to me switching to EV would have more benefit in countries with better pollution control for power plants or produce more electricity from non-fossil fuels. I think here in Ontario, a lot of our electricity comes of nuclear plants. We can benefit more from a switch to EV.

    Of course, this move by China is more about politics and economy (become the top producer of EV batteries, I imagine) than about the air people breath.

    • 0 avatar

      China has 15 operational nuclear plants, and almost 80 (!) more in either in construction or in planning (and already approved).

    • 0 avatar

      its easier to clean up a single coal burning plant (and keep it clean) than 300k cars.. yep, thats how many electric cars a 1GW plant can charge at the same time. Plus they also want to fuel their cars with anything but oil.

      The Chinese want to stay on top of this tech.. the N Koreans are leading and the Japanese are trying to catch up with the lithium frenzy. Its the way of the future and car manufacturing will eventually depend on it.

  • avatar

    Most of our EVs are made here in the US anyways (at least notionally…even though the Coda is really preassembled mostly) and we do rather more favorably treat non-imports too, though not as explicitly.

  • avatar

    So we’ll be able to buy cheap Chinese EVs subsidized by the Chinese tax payer? Sure!

  • avatar

    Domestic mfr protectionist policies by the commies? Those Michigan senators living in glass houses have nothing to scream about.

  • avatar

    shouldn’t the WTO have something to say about this?

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